National Credit Union Administration Board v. RBS Securities, Inc.

This case concerns the National Credit Union Administration Board’s (NCUA) liquidation of Western Corporate Federal Credit Union (Wescorp). The NCUA sued Wachovia Mortgage Loan Trust, LLC (Wachovia) and Nomura Home Equity Loan, Inc. (Nomura) for making false and misleading statements in their offerings of residential mortgage-backed securities (RMBS) purchased by Wescorp. The NCUA brought these claims under the Securities Act of 1933 (1933 Act). The district court dismissed the NCUA’s claims, ruling that 12 U.S.C. § 1787 (b)(14) (the Extender Statute) did not supplant the statute of repose contained within 15 U.S.C. § 77m, and therefore that the NCUA’s claims were time-barred. We VACATE the district court’s judgment and REMAND the case for further proceedings consistent with this opinion.

BACKGROUND

The NCUA is an independent federal agency responsible for chartering and regulating federal credit unions, regulating federally insured state-chartered credit unions, and administering the Share Insurance Fund (the Fund). See 12 U.S.C. §§ 1752a(a), 1754, 1781, 1788-1784. The Fund insures the deposits of nearly 100 million account holders. It is financed through deposits by…